Profit Tax in Russia

Russian businesses, Non-Russian businesses that operate in the Russian Federation through permanent establishments and (or) gaining income from sources located in the Russian Federation

Taxable object

Profit For Russian companies:

income minus costs as established in Chapter 25 of the Tax Code of the Russian Federation

For Non-Russian companies operating in the Russian Federation through permanent establishments:

income minus costs as established in Chapter 25 of the tax Code of the Russian Federation

For Non-Russian companies with income sources located in the Russian Federation:

Income gained from sources located in the Russian Federation as identified by Article 309 of the Tax Code of the Russian Federation
Tax base

Income as identified in Article 247 of the Tax Code of the Russian Federation Special rules may apply in cases where a different from 20% tax rate is used

Reporting period

First, second and third quarters

Tax period

Calendar year

Tax rates

20%(general rate);

0% tax rate applies to (same conditions must be filled):

income received by legal entities engaged in educational and (or) medical activity (under the conditions mentioned in the Article 284.1 of the Tax Code)
income received by the Central Bank of the Russian Federation from activity which as established by the Federal Law «On the Central Bank of the Russian Federation (the Bank of Russia)»
income received by research and development companies according to the Federal Law «On Innovation Center «Skolkovo» Withholding tax rates Dividends 0 %
dividends received by Russian companies due to participation exemption rules (under conditions ofArticle 284 of the Tax Code) 9% – dividends received by Russian legal entities from Russian and foreign companies 15%
dividends received by foreign legal entities from Russian companies Interests 15%, 9%, 0% tax rates may be applied to interest income gained from operations with certain types of securities depending on their issue and circulation conditions;
Other Incomes than dividends, interests, royalties paid to Russian non-residents (according to provisions of the Article 310 of the Tax Code) and income which are not connected with activity of permanent establishment is subject to withholding tax with the following tax rates:

10% on income from using, holding or leasing ships, planes and other mobile transport or containers in connection with international transport activities;
20% on all other incomes
Advance payments

Advanced payments are made for each reporting period, as a rule, on a monthly basis. The taxpayer may also opt for reporting taxable income and making payments on the basis of its actual results on a monthly basis

Tax return Filling

Return at the reporting period-end must be submitted to tax authority not later than 28 calendar days from the relevant reporting period-end. Annual tax return must be submitted to tax authority not later than on 28th day of March of the year following the expired tax period